MEDICAL MARIJUANA ACT - ENACTMENTAct of Apr. 17, 2016, P.L. 84, No. 16 Cl. 35

An Act

Establishing a medical marijuana program; providing for patient and caregivercertification and for medical marijuana organization registration; imposingduties on the Department of Health; providing for a tax on medical marijuanaorganization gross receipts; establishing the Medical Marijuana Program Fund;establishing the Medical Marijuana Advisory Board; establishing a medicalmarijuana research program; imposing duties on the Department of Corrections,the Department of Education and the Department of Human Services; andproviding for academic clinical research centers and for penalties andenforcement.

TABLE OF CONTENTSChapter 1. Preliminary Provisions

Section 101. Short title.Section 102. Declaration of policy.Section 103. Definitions.

Chapter 3. Program

Section 301. Program established.Section 302. Confidentiality and public disclosure.Section 303. Lawful use of medical marijuana.Section 304. Unlawful use of medical marijuana.

Chapter 4. Practitioners

Section 401. Practitioner registration.Section 402. Practitioner restrictions.Section 403. Issuance of certification.Section 404. Certification form.Section 405. Duration.

Chapter 5. Patients

Section 501. Identification cards.Section 502. Caregivers.Section 503. Notice.Section 503.1. Verification.Section 504. Special conditions.Section 505. (Reserved).Section 506. Minors.Section 507. Caregiver authorization and limitations.Section 508. Contents of identification card.Section 509. Suspension.Section 510. Prohibitions.

Chapter 6. Medical Marijuana Organizations

Section 601. Medical marijuana organizations.Section 602. Permits.Section 603. Granting of permit.

Section 604. Notice.Section 605. (Reserved).Section 606. Application and issuance.Section 607. Fees and other requirements.Section 608. Issuance.Section 609. Relocation.Section 610. Terms of permit.Section 611. (Reserved).Section 612. Permit renewals.Section 613. Suspension or revocation.Section 614. Convictions prohibited.Section 615. Diversity goals.Section 616. Limitations on permits.

Chapter 7. Medical Marijuana Controls

Section 701. Electronic tracking.Section 702. Grower/processors.Section 703. Storage and transportation.Section 704. Laboratory.Section 705. Prices.

Chapter 8. Dispensaries

Section 801. Dispensing to patients and caregivers.Section 802. Facility requirements.Section 803. Posting.

Chapter 9. Tax on Medical Marijuana

Section 901. Tax on medical marijuana.Section 902. Medical Marijuana Program Fund.

Chapter 11. Administration

Section 1101. Governing practice and procedure.Section 1102. Reports by medical marijuana organizations.Section 1103. Law enforcement notification.Section 1104. Evaluation.Section 1105. Report.Section 1106. (Reserved).Section 1107. Temporary regulations.

Chapter 12. Medical Marijuana Advisory Board

Section 1201. Advisory board.Section 1202. Regulations based on recommendations of advisory board.

Chapter 13. Offenses Related to Medical Marijuana

Section 1301. Criminal diversion of medical marijuana by practitioners.Section 1302. Criminal diversion of medical marijuana.Section 1303. Criminal retention of medical marijuana.Section 1304. Criminal diversion of medical marijuana by patient or caregiver.Section 1305. Falsification of identification cards.Section 1306. Adulteration of medical marijuana.

Section 1307. Disclosure of information prohibited.Section 1308. Additional penalties.Section 1309. Other restrictions.

Chapter 19. Research Program

Section 1901. Definitions.Section 1902. Establishment of medical marijuana research program.Section 1903. Medical marijuana research program administration.Section 1904. Approval.Section 1905. Requirements.Section 1906. Restrictions.Section 1907. Regulations.Section 1908. Nonentitlement.

Chapter 20. Academic Clinical Research Centers

Section 2001. Definitions.Section 2002. Clinical registrants.Section 2003. Research study.

Chapter 21. Miscellaneous Provisions

Section 2101. Conflict.Section 2101.1. Financial and employment interests.Section 2102. Insurers.Section 2103. Protections for patients and caregivers.Section 2104. Schools.Section 2105. Day-care centers.Section 2106. Medical marijuana from other states.Section 2107. Zoning.Section 2108. Notice.Section 2109. Applicability.Section 2110. Effective date.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts asfollows:

CHAPTER 1PRELIMINARY PROVISIONS

Section 101. Short title.This act shall be known and may be cited as the Medical Marijuana Act.

Section 102. Declaration of policy.The General Assembly finds and declares as follows:

(1) Scientific evidence suggests that medical marijuana is one potentialtherapy that may mitigate suffering in some patients and also enhance qualityof life.

(2) The Commonwealth is committed to patient safety. Carefullyregulating the program which allows access to medical marijuana will enhancepatient safety while research into its effectiveness continues.

(3) It is the intent of the General Assembly to:

(i) Provide a program of access to medical marijuana which balancesthe need of patients to have access to the latest treatments with theneed to promote patient safety.

(ii) Provide a safe and effective method of delivery of medicalmarijuana to patients.

(iii) Promote high quality research into the effectiveness andutility of medical marijuana.(4) It is the further intention of the General Assembly that any

Commonwealth-based program to provide access to medical marijuana serve as atemporary measure, pending Federal approval of and access to medical marijuanathrough traditional medical and pharmaceutical avenues.

Section 103. Definitions.The following words and phrases when used in this act shall have the meanings

given to them in this section unless the context clearly indicates otherwise:"Advisory board." The advisory board established under section 1201."Caregiver." The individual designated by a patient or, if the patient is

under 18 years of age, an individual under section 506(2), to deliver medicalmarijuana.

"Certified medical use." The acquisition, possession, use or transportationof medical marijuana by a patient, or the acquisition, possession, delivery,transportation or administration of medical marijuana by a caregiver, for use aspart of the treatment of the patient's serious medical condition, as authorized ina certification under this act, including enabling the patient to toleratetreatment for the serious medical condition.

"Certified registered nurse practitioner." As defined in section 2 of the actof May 22, 1951 (P.L.317, No.69), known as The Professional Nursing Law.

"Change in control." The acquisition by a person or group of persons actingin concert of a controlling interest in an applicant or permittee either all atone time or over the span of a 12-consecutive-month period.

"Continuing care." Treating a patient, in the course of which thepractitioner has completed a full assessment of the patient's medical history andcurrent medical condition, including an in-person consultation with the patient.

"Controlling interest." As follows:(1) For a publicly traded entity, voting rights that entitle a person to

elect or appoint one or more of the members of the board of directors or othergoverning board or the ownership or beneficial holding of 5% or more of thesecurities of the publicly traded entity.

(2) For a privately held entity, the ownership of any security in theentity."Department." The Department of Health of the Commonwealth."Dispensary." A person, including a natural person, corporation, partnership,

association, trust or other entity, or any combination thereof, which holds apermit issued by the department to dispense medical marijuana. The term does notinclude a health care medical marijuana organization under Chapter 19.

"Family or household member." As defined in 23 Pa.C.S. § 6102 (relating todefinitions).

"Financial backer." An investor, mortgagee, bondholder, note holder or othersource of equity, capital or other assets, other than a financial institution.

"Financial institution." A bank, a national banking association, a bank andtrust company, a trust company, a savings and loan association, a building andloan association, a mutual savings bank, a credit union or a savings bank.

"Form of medical marijuana." The characteristics of the medical marijuanarecommended or limited for a particular patient, including the method ofconsumption and any particular dosage, strain, variety and quantity or percentageof medical marijuana or particular active ingredient.

"Fund." The Medical Marijuana Program Fund established in section 902."Grower/processor." A person, including a natural person, corporation,

partnership, association, trust or other entity, or any combination thereof, whichholds a permit from the department under this act to grow and process medicalmarijuana. The term does not include a health care medical marijuana organizationunder Chapter 19.

"Identification card." A document issued under section 501 that authorizesaccess to medical marijuana under this act.

"Individual dose." A single measure of medical marijuana."Medical marijuana." Marijuana for certified medical use as set forth in this

act."Medical marijuana organization." A dispensary or a grower/processor. The

term does not include a health care medical marijuana organization under Chapter19.

"Patient." An individual who:(1) has a serious medical condition;(2) has met the requirements for certification under this act; and(3) is a resident of this Commonwealth.

"Permit." An authorization issued by the department to a medical marijuanaorganization to conduct activities under this act.

"Physician assistant." As defined in section 2 of the act of December 20,1985 (P.L.457, No.112), known as the Medical Practice Act of 1985, and section 2of the act of October 5, 1978 (P.L.1109, No.261), known as the Osteopathic MedicalPractice Act.

"Practitioner." A physician who is registered with the department undersection 401.

"Prescription drug monitoring program." The Achieving Better Care byMonitoring All Prescriptions Program (ABC-MAP).

"Principal." An officer, director or person who directly owns a beneficialinterest in or ownership of the securities of an applicant or permittee, a personwho has a controlling interest in an applicant or permittee or who has the abilityto elect the majority of the board of directors of an applicant or permittee orotherwise control an applicant or permittee, other than a financial institution.

"Registry." The registry established by the department for practitioners."Secretary." The Secretary of Health of the Commonwealth."Security." As defined in section 102(t) of the act of December 5, 1972

(P.L.1280, No.284), known as the Pennsylvania Securities Act of 1972."Serious medical condition." Any of the following:

(1) Cancer.(2) Positive status for human immunodeficiency virus or acquired immune

deficiency syndrome.(3) Amyotrophic lateral sclerosis.(4) Parkinson's disease.(5) Multiple sclerosis.(6) Damage to the nervous tissue of the spinal cord with objective

neurological indication of intractable spasticity.(7) Epilepsy.(8) Inflammatory bowel disease.(9) Neuropathies.(10) Huntington's disease.(11) Crohn's disease.(12) Post-traumatic stress disorder.(13) Intractable seizures.(14) Glaucoma.(15) Sickle cell anemia.

(16) Severe chronic or intractable pain of neuropathic origin or severechronic or intractable pain in which conventional therapeutic intervention andopiate therapy is contraindicated or ineffective.

(17) Autism."Terminally ill." A medical prognosis of life expectancy of approximately one

year or less if the illness runs its normal course.

CHAPTER 3PROGRAM

Section 301. Program established.(a) Establishment.--A medical marijuana program for patients suffering from

serious medical conditions is established. The program shall be implemented andadministered by the department. The department shall:

(1) Issue permits to medical marijuana organizations to authorize themto grow, process or dispense medical marijuana and ensure their compliancewith this act.

(2) Register practitioners and ensure their compliance with this act.(3) Have regulatory and enforcement authority over the growing,

processing, sale and use of medical marijuana in this Commonwealth.(4) Establish and maintain an electronic database to include activities

and information relating to medical marijuana organizations, certificationsand identification cards issued, practitioner registration and electronictracking of all medical marijuana as required under this act to include:

(i) Ensurance that medical marijuana is not diverted or otherwiseused for unlawful purposes by a practitioner or medical marijuanaorganization.

(ii) Ability to establish the authenticity of identification cards.(iii) Recording recommended forms of medical marijuana provided in

a certification filed by the practitioner.(iv) Monitoring all growth, transfer, possession, processing,

testing and dispensing of medical marijuana in this Commonwealth.(v) The tracking system under section 701 must include information

under section 801(a) and any other information required by the departmentto be used by the department and dispensaries to enable a dispensary tolawfully provide medical marijuana. The tracking system and databaseshall be capable of providing information in real time. The databaseshall be capable of receiving information from a dispensary regarding thedisbursement of medical marijuana to patients and caregivers. Thisinformation shall be immediately accessible to the department and otherdispensaries to inhibit diversion and ensure compliance with this act.(5) Maintain a directory of patients and caregivers approved to use or

assist in the administration of medical marijuana within the department'sdatabase.

(6) Develop a four-hour training course for physicians, pharmacists,certified registered nurse practitioners and physician assistants regardingthe latest scientific research on medical marijuana, including the risks andbenefits of medical marijuana, and other information deemed necessary by thedepartment. Successful completion of the course shall be approved ascontinuing education credits as determined by:

(i) The State Board of Medicine and the State Board of OsteopathicMedicine.

(ii) The State Board of Pharmacy.(iii) The State Board of Nursing.

(7) Develop a two-hour course for the principals and employees of amedical marijuana organization who either have direct contact with patients or

caregivers or who physically handle medical marijuana. Employees mustsuccessfully complete the course no later than 90 days after commencingemployment. Principals must successfully complete the course prior tocommencing initial operation of the medical marijuana organization. Thesubject matter of the course shall include the following:

(i) Methods to recognize and report unauthorized activity,including diversion of medical marijuana for unlawful purposes andfalsification of identification cards.

(ii) Proper handling of medical marijuana and recordkeeping.(iii) Any other subject required by the department.

(8) Develop enforcement procedures, including announced and unannouncedinspections of facilities of the grower/processors and dispensaries and allrecords of the medical marijuana organizations.

(9) Establish a program to authorize the use of medical marijuana toconduct medical research relating to the use of medical marijuana to treatserious medical conditions, including the collection of data and the provisionof research grants.

(10) Establish and maintain public outreach programs about the medicalmarijuana program, including:

(i) A dedicated telephone number for patients, caregivers andmembers of the public to obtain basic information about the dispensing ofmedical marijuana under this act.

(ii) A publicly accessible Internet website with similarinformation.(11) Collaborate as necessary with other Commonwealth agencies or

contract with third parties as necessary to carry out the provisions of thisact.

(12) Determine the minimum number and type of medical marijuana productsto be produced by a grower/processor and dispensed by a dispensary.

(13) Develop recordkeeping requirements for all books, papers, anyelectronic database or tracking system data and other information of a medicalmarijuana organization. Information shall be retained for a minimum period offour years unless otherwise provided by the department.

(14) Restrict the advertising and marketing of medical marijuana, whichshall be consistent with the Federal regulations governing prescription drugadvertising and marketing.(b) Regulations.--The department shall promulgate all regulations necessary

to carry out the provisions of this act.Section 302. Confidentiality and public disclosure.

(a) Patient information.--The department shall maintain a confidential listof patients and caregivers to whom it has issued identification cards. Allinformation obtained by the department relating to patients, caregivers and otherapplicants shall be confidential and not subject to public disclosure, includingdisclosure under the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law, including:

(1) Individual identifying information about patients and caregivers.(2) Certifications issued by practitioners.(3) Information on identification cards.(4) Information provided by the Pennsylvania State Police under section

502(b).(5) Information relating to the patient's serious medical condition.

(b) Public information.--The following records are public records and shallbe subject to the Right-to-Know Law:

(1) Applications for permits submitted by medical marijuanaorganizations.

(2) The names, business addresses and medical credentials ofpractitioners authorized to provide certifications to patients to enable themto obtain and use medical marijuana in this Commonwealth. All otherpractitioner registration information shall be confidential and exempt frompublic disclosure under the Right-to-Know Law.

(3) Information relating to penalties or other disciplinary actionstaken against a medical marijuana organization or practitioner by thedepartment for violation of this act.

Section 303. Lawful use of medical marijuana.(a) General rule.--Notwithstanding any provision of law to the contrary, use

or possession of medical marijuana as set forth in this act is lawful within thisCommonwealth.

(b) Requirements.--The lawful use of medical marijuana is subject to thefollowing:

(1) Medical marijuana may only be dispensed to:(i) a patient who receives a certification from a practitioner and

is in possession of a valid identification card issued by the department;and

(ii) a caregiver who is in possession of a valid identificationcard issued by the department.(2) Subject to regulations promulgated under this act, medical marijuana

may only be dispensed to a patient or caregiver in the following forms:(i) pill;(ii) oil;(iii) topical forms, including gels, creams or ointments;(iv) a form medically appropriate for administration by

vaporization or nebulization, excluding dry leaf or plant form until dryleaf or plant forms become acceptable under regulations adopted undersection 1202;

(v) tincture; or(vi) liquid.

(3) Unless otherwise provided in regulations adopted by the departmentunder section 1202, medical marijuana may not be dispensed to a patient or acaregiver in dry leaf or plant form.

(4) An individual may not act as a caregiver for more than fivepatients.

(5) A patient may designate up to two caregivers at any one time.(6) Medical marijuana that has not been used by the patient shall be

kept in the original package in which it was dispensed.(7) A patient or caregiver shall possess an identification card whenever

the patient or caregiver is in possession of medical marijuana.(8) Products packaged by a grower/processor or sold by a dispensary

shall only be identified by the name of the grower/processor, the name of thedispensary, the form and species of medical marijuana, the percentage oftetrahydrocannabinol and cannabinol contained in the product and any otherlabeling required by the department.

Section 304. Unlawful use of medical marijuana.(a) General rule.--Except as provided in section 303, section 704, Chapter 19

or Chapter 20, the use of medical marijuana is unlawful and shall, in addition toany other penalty provided by law, be deemed a violation of the act of April 14,1972 (P.L.233, No.64), known as The Controlled Substance, Drug, Device andCosmetic Act.

(b) Unlawful use described.--It is unlawful to:(1) Smoke medical marijuana.

(2) Except as provided under subsection (c), incorporate medicalmarijuana into edible form.

(3) Grow medical marijuana unless the grower/processor has received apermit from the department under this act.

(4) Grow or dispense medical marijuana unless authorized as a healthcare medical marijuana organization under Chapter 19.

(5) Dispense medical marijuana unless the dispensary has received apermit from the department under this act.(c) Edible medical marijuana.--Nothing in this act shall be construed to

preclude the incorporation of medical marijuana into edible form by a patient or acaregiver in order to aid ingestion of the medical marijuana by the patient.

CHAPTER 4PRACTITIONERS

Section 401. Practitioner registration.(a) Eligibility.--A physician included in the registry is authorized to issue

certifications to patients to use medical marijuana. To be eligible for inclusionin the registry:

(1) A physician must apply for registration in the form and mannerrequired by the department.

(2) The department must determine that the physician is, by training orexperience, qualified to treat a serious medical condition. The physicianshall provide documentation of credentials, training or experience as requiredby the department.

(3) The physician must have successfully completed the course undersection 301(a)(6).(b) Department action.--

(1) The department shall review an application submitted by a physicianto determine whether to include the physician in the registry. The reviewshall include information maintained by the Department of State regardingwhether the physician has a valid, unexpired, unrevoked, unsuspendedPennsylvania license to practice medicine and whether the physician has beensubject to discipline.

(2) The inclusion of a physician in the registry shall be subject toannual review to determine if the physician's license is no longer valid, hasexpired or been revoked or the physician has been subject to discipline. Ifthe license is no longer valid, the department shall remove the physician fromthe registry until the physician holds a valid, unexpired, unrevoked,unsuspended Pennsylvania license to practice medicine.

(3) The Department of State shall report to the department theexpiration, suspension or revocation of a physician's license and anydisciplinary actions in a timely fashion.(c) Practitioner requirements.--A practitioner included in the registry shall

have an ongoing responsibility to immediately notify the department in writing ifthe practitioner knows or has reason to know that any of the following is truewith respect to a patient for whom the practitioner has issued a certification:

(1) The patient no longer has the serious medical condition for whichthe certification was issued.

(2) Medical marijuana would no longer be therapeutic or palliative.(3) The patient has died.

Section 402. Practitioner restrictions.(a) Practices prohibited.--The following apply with respect to practitioners:

(1) A practitioner may not accept, solicit or offer any form ofremuneration from or to a prospective patient, patient, prospective caregiver,caregiver or medical marijuana organization, including an employee, financial

backer or principal, to certify a patient, other than accepting a fee forservice with respect to the examination of the prospective patient todetermine if the prospective patient should be issued a certification to usemedical marijuana.

(2) A practitioner may not hold a direct or economic interest in amedical marijuana organization.

(3) A practitioner may not advertise the practitioner's services as apractitioner who can certify a patient to receive medical marijuana.(b) Unprofessional conduct.--A practitioner who violates subsection (a) shall

not be permitted to issue certifications to patients. The practitioner shall beremoved from the registry.

(c) Discipline.--In addition to any other penalty that may be imposed underthis act, a violation of subsection (a) or section 403(e) shall be deemedunprofessional conduct under section 41(8) of the act of December 20, 1985(P.L.457, No.112), known as the Medical Practice Act of 1985, or section 15(a)(8)of the act of October 5, 1978 (P.L.1109, No.261), known as the Osteopathic MedicalPractice Act, and shall subject the practitioner to discipline by the State Boardof Medicine or the State Board of Osteopathic Medicine, as appropriate.Section 403. Issuance of certification.

(a) Conditions for issuance.--A certification to use medical marijuana may beissued by a practitioner to a patient if all of the following requirements aremet:

(1) The practitioner has been approved by the department for inclusionin the registry and has a valid, unexpired, unrevoked, unsuspendedPennsylvania license to practice medicine at the time of the issuance of thecertification.

(2) The practitioner has determined that the patient has a seriousmedical condition and has included the condition in the patient's health carerecord.

(3) The patient is under the practitioner's continuing care for theserious medical condition.

(4) In the practitioner's professional opinion and review of pasttreatments, the practitioner determines the patient is likely to receivetherapeutic or palliative benefit from the use of medical marijuana.(b) Contents.--The certification shall include:

(1) The patient's name, date of birth and address.(2) The specific serious medical condition of the patient.(3) A statement by the practitioner that the patient has a serious

medical condition and the patient is under the practitioner's continuing carefor the serious medical condition.

(4) The date of issuance.(5) The name, address, telephone number and signature of the

practitioner.(6) Any requirement or limitation concerning the appropriate form of

medical marijuana and limitation on the duration of use, if applicable,including whether the patient is terminally ill.(c) Consultation.--A practitioner shall review the prescription drug

monitoring program prior to:(1) Issuing a certification to determine the controlled substance

history of a patient.(2) Recommending a change of amount or form of medical marijuana.

(c.1) Other access by practitioner.--A practitioner may access theprescription drug monitoring program to do any of the following:

(1) Determine whether a patient may be under treatment with a controlledsubstance by another physician or other person.

(2) Allow the practitioner to review the patient's controlled substancehistory as deemed necessary by the practitioner.

(3) Provide to the patient, or caregiver on behalf of the patient ifauthorized by the patient, a copy of the patient's controlled substancehistory.(d) Duties of practitioner.--The practitioner shall:

(1) Provide the certification to the patient.(2) Provide a copy of the certification to the department, which shall

place the information in the patient directory within the department'selectronic database. The department shall permit electronic submission of thecertification.

(3) File a copy of the certification in the patient's health carerecord.(e) Prohibition.--A practitioner may not issue a certification for the

practitioner's own use or for the use of a family or household member.Section 404. Certification form.

The department shall develop a standard certification form, which shall beavailable to practitioners upon request. The form shall be availableelectronically. The form shall include a statement that a false statement made bya practitioner is punishable under the applicable provisions of 18 Pa.C.S. Ch. 49(relating to falsification and intimidation).Section 405. Duration.

Receipt of medical marijuana by a patient or caregiver from a dispensary maynot exceed a 30-day supply of individual doses. During the last seven days of any30-day period during the term of the identification card, a patient may obtain andpossess a 30-day supply for the subsequent 30-day period. Additional 30-daysupplies may be provided in accordance with this section for the duration of theauthorized period of the identification card unless a shorter period is indicatedon the certification.

CHAPTER 5PATIENTS

Section 501. Identification cards.(a) Issuance.--The department may issue an identification card to a patient

who has a certification approved by the department and to a caregiver designatedby the patient. An identification card issued to a patient shall authorize thepatient to obtain and use medical marijuana as authorized by this act. Anidentification card issued to a caregiver shall authorize the caregiver to obtainmedical marijuana on behalf of the patient.

(b) Procedure for issuance.--The department shall develop and implementprocedures for:

(1) Review and approval of applications for identification cards.(2) Issuance of identification cards to patients and caregivers.(3) Review of the certification submitted by the practitioner and the

patient.(c) Application.--A patient or a caregiver may apply, in a form and manner

prescribed by the department, for issuance or renewal of an identification card. Acaregiver must submit a separate application for issuance or renewal. Eachapplication must include:

(1) The name, address and date of birth of the patient.(2) The name, address and date of birth of a caregiver.(3) The certification issued by the practitioner.(4) The name, address and telephone number of the practitioner and

documentation from the practitioner that all of the requirements of section403(a) have been met.

(5) A $50 processing fee. The department may waive or reduce the fee ifthe applicant demonstrates financial hardship.

(6) The signature of the applicant and date signed.(7) Other information required by the department.

(d) Forms.--Application and renewal forms shall be available on thedepartment's publicly accessible Internet website.

(e) Expiration.--An identification card of a patient or caregiver shallexpire within one year from the date of issuance, upon the death of the patient,or as otherwise provided in this section.

(f) Separate cards to be issued.--The department shall issue separateidentification cards for patients and caregivers as soon as reasonably practicableafter receiving completed applications, unless it determines that an applicationis incomplete or factually inaccurate, in which case it shall promptly notify theapplicant.

(g) (Reserved).(h) Change in name or address.--A patient or caregiver who has been issued an

identification card shall notify the department within 10 days of any change ofname or address. In addition, the patient shall notify the department within 10days if the patient no longer has the serious medical condition noted on thecertification.

(i) Lost or defaced card.--In the event of a lost, stolen, destroyed orillegible identification card, the patient or caregiver shall apply to thedepartment within 10 business days of discovery of the loss or defacement of thecard for a replacement card. The application for a replacement card shall be on aform furnished by the department and accompanied by a $25 fee. The department mayestablish higher fees for issuance of second and subsequent replacementidentification cards. The department may waive or reduce the fee in cases ofdemonstrated financial hardship. The department shall issue a replacementidentification card as soon as practicable. A patient or caregiver may not obtainmedical marijuana until the department issues the replacement card.Section 502. Caregivers.

(a) Requirements.--(1) If the patient designates a caregiver, the application shall include

the name, address and date of birth of the caregiver, and other individualidentifying information required by the department and the following:

(i) Federal and Commonwealth criminal history record information asset forth in subsection (b).

(ii) If the caregiver has an identification card for the caregiveror another patient, the expiration date of the identification card.

(iii) Other information required by the department.(2) The application shall be accompanied by a fee of $50. The department

may waive or reduce the fee in cases of demonstrated financial hardship.(3) The department may require additional information for the

application.(4) The application shall be signed and dated by the applicant.

(b) Criminal history.--A caregiver shall submit fingerprints for the purposeof obtaining criminal history record checks, and the Pennsylvania State Police orits authorized agent shall submit the fingerprints to the Federal Bureau ofInvestigation for the purpose of verifying the identity of the applicant andobtaining a current record of any criminal arrests and convictions. Any criminalhistory record information relating to a caregiver obtained under this section bythe department may be interpreted and used by the department only to determine theapplicant's character, fitness and suitability to serve as a caregiver under thisact. The department shall also review the prescription drug monitoring programrelating to the caregiver. The department shall deny the application of a

caregiver who has been convicted of a criminal offense that occurred within thepast five years relating to the sale or possession of drugs, narcotics orcontrolled substances. The department may deny an application if the applicant hasa history of drug abuse or of diverting controlled substances or illegal drugs.Section 503. Notice.

An application for an identification card shall include notice that a falsestatement made in the application is punishable under the applicable provisions of18 Pa.C.S. Ch. 49 (relating to falsification and intimidation).Section 503.1. Verification.

The department shall verify the information in a patient or caregiver'sapplication and on any renewal form.Section 504. Special conditions.

The following apply:(1) If the practitioner states in the certification that, in the

practitioner's professional opinion, the patient would benefit from medicalmarijuana only until a specified earlier date, then the identification cardshall expire on that date.

(2) If the certification so provides, the identification card shallstate any requirement or limitation by the practitioner as to the form ofmedical marijuana for the patient.

Section 505. (Reserved).Section 506. Minors.

If a patient is under 18 years of age, the following shall apply:(1) The patient shall have a caregiver.(2) A caregiver must be one of the following:

(i) A parent or legal guardian of the patient.(ii) An individual designated by a parent or legal guardian.(iii) An appropriate individual approved by the department upon a

sufficient showing that no parent or legal guardian is appropriate oravailable.

Section 507. Caregiver authorization and limitations.(a) Age.--An individual who is under 21 years of age may not be a caregiver

unless a sufficient showing, as determined by the department, is made to thedepartment that the individual should be permitted to serve as a caregiver.

(b) Changing caregiver.--If a patient wishes to change or terminate thedesignation of the patient's caregiver, for whatever reason, the patient shallnotify the department as soon as practicable. The department shall issue anotification to the caregiver that the caregiver's identification card is invalidand must be promptly returned to the department.

(c) Denial in part.--If an application of a patient designates an individualas a caregiver who is not authorized to be a caregiver, that portion of theapplication shall be denied by the department. The department shall review thebalance of the application and may approve that portion of it.Section 508. Contents of identification card.

An identification card shall contain the following:(1) The name of the caregiver or the patient, as appropriate. The

identification card shall also state whether the individual is designated as apatient or as a caregiver.

(2) The date of issuance and expiration date.(3) An identification number for the patient or caregiver, as

appropriate.(4) A photograph of the individual to whom the identification card is

being issued, whether the individual is a patient or a caregiver. The methodof obtaining the photograph shall be specified by the department by

regulation. The department shall provide reasonable accommodation for apatient who is confined to the patient's home or is in inpatient care.

(5) Any requirement or limitation set by the practitioner as to the formof medical marijuana.

(6) Any other requirements determined by the department, except thedepartment may not require that an identification card disclose the patient'sserious medical condition.

Section 509. Suspension.If a patient or caregiver intentionally, knowingly or recklessly violates any

provision of this act as determined by the department, the identification card ofthe patient or caregiver may be suspended or revoked. The suspension or revocationshall be in addition to any criminal or other penalty that may apply.Section 510. Prohibitions.

The following prohibitions shall apply:(1) A patient may not operate or be in physical control of any of the

following while under the influence with a blood content of more than 10nanograms of active tetrahydrocannabis per milliliter of blood in serum:

(i) Chemicals which require a permit issued by the FederalGovernment or a state government or an agency of the Federal Governmentor a state government.

(ii) High-voltage electricity or any other public utility.(2) A patient may not perform any employment duties at heights or in

confined spaces, including, but not limited to, mining while under theinfluence of medical marijuana.

(3) A patient may be prohibited by an employer from performing any taskwhich the employer deems life-threatening, to either the employee or any ofthe employees of the employer, while under the influence of medical marijuana.The prohibition shall not be deemed an adverse employment decision even if theprohibition results in financial harm for the patient.

(4) A patient may be prohibited by an employer from performing any dutywhich could result in a public health or safety risk while under the influenceof medical marijuana. The prohibition shall not be deemed an adverseemployment decision even if the prohibition results in financial harm for thepatient.

CHAPTER 6MEDICAL MARIJUANA ORGANIZATIONS

Section 601. Medical marijuana organizations.The following entities shall be authorized to receive a permit to operate as a

medical marijuana organization to grow, process or dispense medical marijuana:(1) Grower/processors.(2) Dispensaries.

Section 602. Permits.(a) Application.--An application for a grower/processor or dispensary permit

to grow, process or dispense medical marijuana shall be in a form and mannerprescribed by the department and shall include:

(1) Verification of all principals, operators, financial backers oremployees of a medical marijuana grower/processor or dispensary.

(2) A description of responsibilities as a principal, operator,financial backer or employee.

(3) Any release necessary to obtain information from governmentalagencies, employers and other organizations.

(4) A criminal history record check. Medical marijuana organizationsapplying for a permit shall submit fingerprints of principals, financialbackers, operators and employees to the Pennsylvania State Police for the

purpose of obtaining criminal history record checks and the Pennsylvania StatePolice or its authorized agent shall submit the fingerprints to the FederalBureau of Investigation for the purpose of verifying the identity of theprincipals, financial backers, operators and employees and obtaining a currentrecord of any criminal arrests and convictions. Any criminal history recordinformation relating to principals, financial backers, operators and employeesobtained under this section by the department may be interpreted and used bythe department only to determine the principal's, financial backer's,operator's and employee's character, fitness and suitability to serve as aprincipal, financial backer, operator and employee under this act. Thisparagraph shall not apply to an owner of securities in a publicly tradedcorporation if the department determines that the owner of the securities isnot substantially involved in the activities of the medical marijuanaorganization.

(5) Details relating to a similar license, permit or other authorizationobtained in another jurisdiction, including any suspensions, revocations ordiscipline in that jurisdiction.

(6) A description of the business activities in which it intends toengage as a medical marijuana organization.

(7) A statement that the applicant:(i) Is of good moral character. For purposes of this subparagraph,

an applicant shall include each financial backer, operator, employee andprincipal of the medical marijuana organization.

(ii) Possesses the ability to obtain in an expeditious manner theright to use sufficient land, buildings and other premises and equipmentto properly carry on the activity described in the application and anyproposed location for a facility.

(iii) Is able to maintain effective security and control to preventdiversion, abuse and other illegal conduct relating to medical marijuana.

(iv) Is able to comply with all applicable Commonwealth laws andregulations relating to the activities in which it intends to engageunder this act.(8) The name, residential address and title of each financial backer and

principal of the applicant. Each individual, or lawful representative of alegal entity, shall submit an affidavit with the application setting forth:

(i) Any position of management or ownership during the preceding 10years of a controlling interest in any other business, located inside oroutside this Commonwealth, manufacturing or distributing controlledsubstances.

(ii) Whether the person or business has been convicted of acriminal offense graded higher than a summary offense or has had a permitrelating to medical marijuana suspended or revoked in any administrativeor judicial proceeding.(9) Any other information the department may require.

(b) Notice.--An application shall include notice that a false statement madein the application is punishable under the applicable provisions of 18 Pa.C.S. Ch.49 (relating to falsification and intimidation).Section 603. Granting of permit.

(a) General rule.--The department may grant or deny a permit to agrower/processor or dispensary.

(a.1) Determination.--In making a decision under subsection (a), thedepartment shall determine that:

(1) The applicant will maintain effective control of and preventdiversion of medical marijuana.

(2) The applicant will comply with all applicable laws of thisCommonwealth.

(3) The applicant is ready, willing and able to properly carry on theactivity for which a permit is sought.

(4) The applicant possesses the ability to obtain in an expeditiousmanner sufficient land, buildings and equipment to properly grow, process ordispense medical marijuana.

(5) It is in the public interest to grant the permit.(6) The applicant, including the financial backer or principal, is of

good moral character and has the financial fitness necessary to operate.(7) The applicant is able to implement and maintain security, tracking,

recordkeeping and surveillance systems relating to the acquisition,possession, growth, manufacture, sale, delivery, transportation, distributionor the dispensing of medical marijuana as required by the department.

(8) The applicant satisfies any other conditions as determined by thedepartment.(b) Nontransferability.--A permit issued under this chapter shall be

nontransferable.(c) Privilege.--The issuance or renewal of a permit shall be a revocable

privilege.(d) Regions.--The department shall establish a minimum of three regions

within this Commonwealth for the purpose of granting permits to grower/processorsand dispensaries and enforcing this act. The department shall approve permits forgrower/processors and dispensaries in a manner which will provide an adequateamount of medical marijuana to patients and caregivers in all areas of thisCommonwealth. The department shall consider the following when issuing a permit:

(1) Regional population.(2) The number of patients suffering from serious medical conditions.(3) The types of serious medical conditions.(4) Access to public transportation.(5) Any other factor the department deems relevant.

Section 604. Notice.When the boundaries under section 603(d) are established, the department shall

publish notice of the determination in the Pennsylvania Bulletin. The departmentmay adjust the boundaries as necessary every two years. Notice of any adjustmentto the boundaries shall be published in the Pennsylvania Bulletin.Section 605. (Reserved).Section 606. Application and issuance.

(a) Duty to report.--An applicant to be a grower/processor or to operate adispensary is under a continuing duty to:

(1) Report to the department any change in facts or circumstancesreflected in the application or any newly discovered or occurring fact orcircumstance which is required to be included in the application, including achange in control of the medical marijuana organization.

(2) Report to law enforcement, within 24 hours, any loss or theft ofmedical marijuana.

(3) Submit to announced or unannounced inspections by the department ofthe facilities for growing, processing, dispensing or selling medicalmarijuana, including all records of the organization.(b) Additional information.--If the department is not satisfied that the

applicant should be issued a permit, the department shall notify the applicant inwriting of the factors for which further documentation is required. Within 30 daysof the receipt of the notification, the applicant may submit additional materialto the department.Section 607. Fees and other requirements.

The following apply:(1) For a grower/processor:

(i) An initial application fee in the amount of $10,000 shall bepaid. The fee is nonrefundable.

(ii) A fee for a permit as a grower/processor in the amount of$200,000 shall be paid. The permit shall be valid for one year.Applicants shall submit the permit fee at the time of submission of theapplication. The fee shall be returned if the permit is not granted.

(iii) A renewal fee for the permit as a grower/processor in theamount of $10,000 shall be paid and shall cover renewal for alllocations. The renewal fee shall be returned if the renewal is notgranted.

(iv) An application to renew a permit must be filed with thedepartment not more than six months nor less than four months prior toexpiration.

(v) All fees shall be paid by certified check or money order.(vi) Before issuing an initial permit under this paragraph, the

department shall verify that the applicant has at least $2,000,000 incapital, $500,000 of which must be on deposit with a financialinstitution.(2) For a dispensary:

(i) An initial application fee in the amount of $5,000 shall bepaid. The fee is nonrefundable.

(ii) A permit fee for a dispensary shall be $30,000 for eachlocation. The period of the permit is one year. An applicant shall submitthe permit fee at the time of submission of the application. The feeshall be returned if the application is not granted.

(iii) A renewal fee for the permit as a dispensary in the amount of$5,000 shall be paid. The fee shall be returned if the renewal is notgranted and shall cover renewal for all locations.

(iv) An application to renew a permit must be filed with thedepartment not more than six months nor less than four months prior toexpiration.

(v) All fees shall be paid by certified check or money order.(vi) Before issuing an initial permit under this paragraph, the

department shall verify that the applicant has at least $150,000 incapital, which must be on deposit with a financial institution.(3) A fee of $250 shall be required when amending the application to

indicate relocation within this Commonwealth or the addition or deletion ofapproved activities by the medical marijuana organization.

(4) Fees payable under this section shall be deposited into the fund.Section 608. Issuance.

A permit issued by the department to a medical marijuana organization shall beeffective only for that organization and shall specify the following:

(1) The name and address of the medical marijuana organization.(2) The activities of the medical marijuana organization permitted under

this act.(3) The land, buildings, facilities or location to be used by the

medical marijuana organization.(4) Any other information required by the department.

Section 609. Relocation.The department may approve an application from a medical marijuana

organization to relocate within this Commonwealth or to add or delete activitiesor facilities.Section 610. Terms of permit.

A permit issued by the department shall be valid for one year from the date ofissuance.Section 611. (Reserved).Section 612. Permit renewals.

(a) Renewal.--An application for renewal shall include the followinginformation:

(1) Any material change in the information provided by the medicalmarijuana organization in a prior application or renewal of a permit.

(2) Any charge or initiated, pending or concluded investigation, duringthe period of the permit, by any governmental or administrative agency withrespect to:

(i) any incident involving the theft, loss or possible diversion ofmedical marijuana grown, processed or dispensed by the applicant; and

(ii) compliance by the applicant with the laws of this Commonwealthwith respect to any substance listed in section 4 of the act of April 14,1972 (P.L.233, No.64), known as The Controlled Substance, Drug, Deviceand Cosmetic Act.

(b) Approval.--The department shall renew a permit unless the departmentdetermines that:

(1) The applicant is unlikely to maintain or be able to maintaineffective control against diversion of medical marijuana.

(2) The applicant is unlikely to comply with all laws of thisCommonwealth applicable to the activities in which it may engage under thepermit.(c) Nonrenewal decision.--The denial or nonrenewal shall specify in detail

how the applicant has not satisfied the department's requirements for renewal.Within 30 days of the department's decision, the applicant may submit additionalmaterial to the department or demand a hearing, or both. If a hearing is demanded,the department shall fix a date as soon as practicable.Section 613. Suspension or revocation.

The department may suspend or revoke a medical marijuana organization permitif:

(1) The department has evidence that the medical marijuana organizationhas failed to maintain effective control against diversion of medicalmarijuana.

(2) The organization violates any provision of this act or a regulationof the department.

(3) The organization has intentionally, knowingly, recklessly ornegligently failed to comply with applicable laws of this Commonwealthrelating to medical marijuana.

Section 614. Convictions prohibited.The following individuals may not hold volunteer positions or positions with

remuneration in or be affiliated with a medical marijuana organization, includinga clinical registrant under Chapter 20, in any way if the individual has beenconvicted of any criminal offense related to the sale or possession of illegaldrugs, narcotics or controlled substances:

(1) Financial backers.(2) Principals.(3) Employees.

Section 615. Diversity goals.(a) Goals.--It is the intent and goal of the General Assembly that the

department promote diversity and the participation by diverse groups in theactivities authorized under this act. In order to further this goal, thedepartment shall adopt and implement policies ensuring the following:

(1) That diverse groups are accorded equal opportunity in the permittingprocess.

(2) That permittees promote the participation of diverse groups in theiroperations by affording equal access to employment opportunities.(b) Duties of department.--To facilitate participation by diverse groups in

the activities authorized under this act, the department shall:(1) Conduct necessary and appropriate outreach including, if necessary,

consulting with other Commonwealth agencies to identify diverse groups who mayqualify for participation in activities under this act.

(2) Provide sufficient and continuous notice of the participationopportunities afforded under this act by publishing notice on the department'spublicly accessible Internet website.

(3) Include in the applications for permit under this act language toencourage applicants to utilize and give consideration to diverse groups forcontracting or professional services opportunities.(c) Reports.--No later than March 1, 2018, and each March 1 thereafter, the

department shall submit a report to the chairperson and minority chairperson ofthe Public Health and Welfare Committee of the Senate and the chairperson andminority chairperson of the Health Committee of the House of Representativessummarizing the participation and utilization of diverse groups in the activitiesauthorized under this act. The report shall include:

(1) The participation level, by percentage, of diverse groups in theactivities authorized under this act.

(2) A summary of how diverse groups are utilized by permittees,including in the provision of goods or services.

(3) Any other information the department deems appropriate.(d) Definitions.--The following words and phrases when used in this section

shall have the meanings given to them in this subsection unless the contextclearly indicates otherwise:

"Disadvantaged business." As defined in 74 Pa.C.S. § 303(b) (relating todiverse business participation).

"Diverse group." A disadvantaged business, minority-owned business, women-owned business, service-disabled veteran-owned small business or veteran-ownedsmall business that has been certified by a third-party certifying organization.

"Minority-owned business." As defined in 74 Pa.C.S. § 303(b)."Service-disabled veteran-owned small business." As defined in 51 Pa.C.S. §

9601 (relating to definitions)."Third-party certifying organization." As defined in 74 Pa.C.S. § 303(b)."Veteran-owned small business." As defined in 51 Pa.C.S. § 9601."Women-owned business." As defined in 74 Pa.C.S. § 303(b).

Section 616. Limitations on permits.The following limitations apply to approval of permits for grower/processors

and dispensaries:(1) The department may not initially issue permits to more than 25

growers/processors.(2) The department may not initially issue permits to more than 50

dispensaries. Each dispensary may provide medical marijuana at no more thanthree separate locations.

(3) The department may not issue more than five individual dispensarypermits to one person.

(4) The department may not issue more than one individualgrower/processor permit to one person.

(5) No more than five grower/processors may be issued permits asdispensaries. If the number of growers/processors is increased under section

1202, no more than 20% of the total number of growers/processors may also beissued permits as dispensaries.

(6) A dispensary may only obtain medical marijuana from agrower/processor holding a valid permit under this act.

(7) A grower/processor may only provide medical marijuana to adispensary holding a valid permit under this act.

CHAPTER 7MEDICAL MARIJUANA CONTROLS

Section 701. Electronic tracking.(a) Requirement.--A grower/processor or dispensary must implement an

electronic inventory tracking system which shall be directly accessible to thedepartment through its electronic database that electronically tracks all medicalmarijuana on a daily basis. The system shall include tracking of all of thefollowing:

(1) For a grower/processor, a seed-to-sale tracking system that tracksthe medical marijuana from seed to plant until the medical marijuana is soldto a dispensary.

(2) For a dispensary, medical marijuana from purchase from thegrower/processor to sale to a patient or caregiver and that includesinformation that verifies the validity of an identification card presented bythe patient or caregiver.

(3) For a grower/processor and a dispensary, a daily log of each day'sbeginning inventory, acquisitions, amounts purchased and sold, disbursements,disposals and ending inventory. The tracking system shall include prices paidand amounts collected from patients and caregivers.

(4) For a grower/processor and a dispensary, a system for recall ofdefective medical marijuana.

(5) For a grower/processor and a dispensary, a system to track the plantwaste resulting from the growth of medical marijuana or other disposal,including the name and address of any disposal service.(b) Additional requirements.--In addition to the information under subsection

(a), each medical marijuana organization shall track the following:(1) Security and surveillance.(2) Recordkeeping and record retention.(3) The acquisition, possession, growing and processing of medical

marijuana.(4) Delivery and transportation, including amounts and method of

delivery.(5) Dispensing, including amounts, pricing and amounts collected from

patients and caregivers.(c) Access.--Information maintained in electronic tracking systems under

subsection (a) shall be confidential and not subject to the act of February 14,2008 (P.L.6, No.3), known as the Right-to-Know Law.

(d) Reports.--Within one year of the issuance of the first permit to agrower/processor or dispensary, and every three months thereafter in a form andmanner prescribed by the department, the following information shall be providedto the department, which shall compile the information and post it on thedepartment's publicly accessible Internet website:

(1) The amount of medical marijuana sold by a grower/processor duringeach three-month period.

(2) The price of amounts of medical marijuana sold by grower/processorsas determined by the department.

(3) The amount of medical marijuana purchased by each dispensary in thisCommonwealth.

(4) The cost of amounts of medical marijuana to each dispensary inamounts as determined by the department.

(5) The total amount and dollar value of medical marijuana sold by eachdispensary in the three-month period.

Section 702. Grower/processors.(a) Authorization.--Subject to subsection (b), a grower/processor may do all

of the following in accordance with department regulations:(1) Obtain seed from outside this Commonwealth to initially grow medical

marijuana.(2) Obtain seed and plant material from another grower/processor within

this Commonwealth to grow medical marijuana.(b) Limitations.--

(1) A grower/processor may only grow, store, harvest or process medicalmarijuana in an indoor, enclosed, secure facility which:

(i) includes electronic locking systems, electronic surveillanceand other features required by the department; and

(ii) is located within this Commonwealth.(2) (Reserved).

Section 703. Storage and transportation.The department shall develop regulations relating to the storage and

transportation of medical marijuana among grower/processors, testing laboratoriesand dispensaries which ensure adequate security to guard against in-transitlosses. The tracking system developed by the department shall include alltransportation and storage of medical marijuana. The regulations shall provide forthe following:

(1) Requirements relating to shipping containers and packaging.(2) The manner in which trucks, vans, trailers or other carriers will be

secured.(3) Security systems that include a numbered seal on the trailer.(4) Obtaining copies of drivers' licenses and registrations and other

information related to security and tracking.(5) Use of GPS systems.(6) Number of drivers or other security required to ensure against

storage or in-transit losses.(7) Recordkeeping for delivery and receipt of medical marijuana

products.(8) Requirements to utilize any electronic tracking system required by

the department.(9) Transporting medical marijuana to a grower/processor, approved

laboratory or dispensary.Section 704. Laboratory.

A grower/processor shall contract with an independent laboratory to test themedical marijuana produced by the grower/processor. The department shall approvethe laboratory and require that the laboratory report testing results in a manneras the department shall determine, including requiring a test at harvest and atest at final processing. The possession by a laboratory of medical marijuanashall be a lawful use.Section 705. Prices.

The department and the Department of Revenue shall monitor the price ofmedical marijuana sold by grower/processors and by dispensaries, including a per-dose price. If the department and the Department of Revenue determine that theprices are unreasonable or excessive, the department may implement a cap on theprice of medical marijuana being sold for a period of six months. The cap may beamended during the six-month period. If the department and the Department ofRevenue determine that the prices become unreasonable or excessive following the

expiration of a six-month cap, additional caps may be imposed for periods not toexceed six months.

CHAPTER 8DISPENSARIES

Section 801. Dispensing to patients and caregivers.(a) General rule.--A dispensary that has been issued a permit under Chapter 6

may lawfully dispense medical marijuana to a patient or caregiver uponpresentation to the dispensary of a valid identification card for that patient orcaregiver. The dispensary shall provide to the patient or caregiver a receipt, asappropriate. The receipt shall include all of the following:

(1) The name, address and any identification number assigned to thedispensary by the department.

(2) The name and address of the patient and caregiver.(3) The date the medical marijuana was dispensed.(4) Any requirement or limitation by the practitioner as to the form of

medical marijuana for the patient.(5) The form and the quantity of medical marijuana dispensed.

(b) Requirements.--A dispensary shall have a physician or a pharmacist onsiteat all times during the hours the dispensary is open to receive patients andcaregivers. If a dispensary has more than one separate location, a physicianassistant or a certified registered nurse practitioner may be onsite at each ofthe other locations in lieu of the physician or pharmacist. A physician, apharmacist, a physician assistant or a certified registered nurse practitionershall, prior to assuming duties under this paragraph, successfully complete thecourse established in section 301(a)(6). A physician may not issue a certificationto authorize patients to receive medical marijuana or otherwise treat patients atthe dispensary.

(c) Filing with department.--Prior to dispensing medical marijuana to apatient or caregiver, the dispensary shall file the receipt information with thedepartment utilizing the electronic tracking system. When filing receipts underthis subsection, the dispensary shall dispose of any electronically recordedcertification information as provided by regulation.

(d) Limitations.--No dispensary may dispense to a patient or caregiver:(1) a quantity of medical marijuana greater than that which the patient

or caregiver is permitted to possess under the certification; or(2) a form of medical marijuana prohibited by this act.

(e) Supply.--When dispensing medical marijuana to a patient or caregiver, thedispensary may not dispense an amount greater than a 30-day supply until thepatient has exhausted all but a seven-day supply provided pursuant to a previouslyissued certification until additional certification is presented under section405.

(f) Verification.--Prior to dispensing medical marijuana to a patient orcaregiver, the dispensary shall verify the information in subsections (e) and (g)by consulting the electronic tracking system included in the department'selectronic database established under section 301(a)(4)(v) and the dispensarytracking system under section 701(a)(2).

(g) Form of medical marijuana.--Medical marijuana dispensed to a patient orcaregiver by a dispensary shall conform to any requirement or limitation set bythe practitioner as to the form of medical marijuana for the patient.

(h) Safety insert.--When a dispensary dispenses medical marijuana to apatient or caregiver, the dispensary shall provide to that patient or caregiver,as appropriate, a safety insert. The insert shall be developed and approved by thedepartment. The insert shall provide the following information:

(1) Lawful methods for administering medical marijuana in individualdoses.

(2) Any potential dangers stemming from the use of medical marijuana.(3) How to recognize what may be problematic usage of medical marijuana

and how to obtain appropriate services or treatment for problematic usage.(4) How to prevent or deter the misuse of medical marijuana by minors or

others.(5) Any other information as determined by the department.

(i) Sealed and labeled package.--Medical marijuana shall be dispensed by adispensary to a patient or caregiver in a sealed and properly labeled package. Thelabeling shall contain the following:

(1) The information required to be included in the receipt provided tothe patient or caregiver, as appropriate, by the dispensary.

(2) The packaging date.(3) Any applicable date by which the medical marijuana should be used.(4) A warning stating:

"This product is for medicinal use only. Women should not consume duringpregnancy or while breastfeeding except on the advice of the practitioner whoissued the certification and, in the case of breastfeeding, the infant'spediatrician. This product might impair the ability to drive or operate heavymachinery. Keep out of reach of children."

(5) The amount of individual doses contained within the package and thespecies and percentage of tetrahydrocannabinol and cannabidiol.

(6) A warning that the medical marijuana must be kept in the originalcontainer in which it was dispensed.

(7) A warning that unauthorized use is unlawful and will subject theperson to criminal penalties.

(8) Any other information required by the department.Section 802. Facility requirements.

(a) General rule.--(1) A dispensary may only dispense medical marijuana in an indoor,

enclosed, secure facility located within this Commonwealth, as determined bythe department.

(2) A dispensary may not operate on the same site as a facility used forgrowing and processing medical marijuana.

(3) A dispensary may not be located within 1,000 feet of the propertyline of a public, private or parochial school or a day-care center.

(4) A dispensary may sell medical devices and instruments which areneeded to administer medical marijuana under this act.

(5) A dispensary may sell services approved by the department related tothe use of medical marijuana.(b) Adjustment or waiver of prohibition.--The department may amend a

prohibition under subsection (a)(3) if it is shown by clear and convincingevidence that the amendment is necessary to provide adequate access to patients.An amendment may include additional security, physical plant of a facility orother conditions necessary to protect children.Section 803. Posting.

A dispensary shall post a copy of its permit in a location within its facilityin a manner that is easily observable by patients, caregivers, law enforcementofficers and agents of the department.

CHAPTER 9TAX ON MEDICAL MARIJUANA

Section 901. Tax on medical marijuana.

(a) Tax imposed.--A tax is imposed on the gross receipts of agrower/processor received from the sale of medical marijuana by a grower/processorto a dispensary, to be paid by the grower/processor, at the rate of 5%. The taxshall be charged against and be paid by the grower/processor and shall not beadded as a separate charge or line item on any sales slip, invoice, receipt orother statement or memorandum of the price paid by a dispensary, patient orcaregiver.

(b) Payment of tax and reports.--The tax imposed under subsection (a) shallbe administered in the same manner as the tax imposed under Article XI of the actof March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, except thatestimated tax payments under section 3003.2 of the Tax Reform Code of 1971 shallnot be required. A grower/processor shall make quarterly payments under thissection for each calendar quarter at the rate prescribed in subsection (a) on thegross receipts for the calendar quarter. The tax shall be due and payable on the20th day of January, April, July and October for the preceding calendar quarter ona form prescribed by the Department of Revenue.

(c) (Reserved).(d) Deposit of proceeds.--All money received from the tax imposed under

subsection (a) shall be deposited into the fund.(e) Exemption.--Medical marijuana shall not be subject to the tax imposed

under section 202 of the Tax Reform Code of 1971.(f) Information.--A grower/processor that sells medical marijuana shall

provide to the Department of Revenue information required by the department.Section 902. Medical Marijuana Program Fund.

(a) Fund established.--The Medical Marijuana Program Fund is established as aspecial fund in the State Treasury. Money in the fund is appropriated as set forthin subsection (c). Any amount unspent at the end of a fiscal year shall beappropriated to the department for its operations.

(b) Source of funds.--Fees and taxes payable under this act shall bedeposited into the fund. The money deposited into the fund may only be used forthe purposes set forth in this section. Any interest accrued shall be depositedinto the fund.

(c) Use of proceeds.--After any repayment made under subsection (d), money inthe fund is appropriated in accordance with the following percentages:

(1) To the department, 55% of the revenue in the fund. Forty percent ofthe revenue in the fund shall be expended for operations of the department,including outreach efforts and other projects, as required by this act.Fifteen percent of the amount in the fund shall be used by the department toestablish the following:

(i) a program to assist patients with the cost of providing medicalmarijuana to patients who demonstrate financial hardship or need underthis act, and the department shall develop guidelines and procedures toensure maximum availability to individuals with financial need;

(ii) a program to assist patients and caregivers with the costassociated with the waiver or reduction of fees for identification cardsunder sections 501(c)(5) and 502(a)(2); and

(iii) a program to reimburse caregivers for the cost of providingbackground checks for caregivers.(2) To the Department of Drug and Alcohol Programs, for drug abuse

prevention and counseling and treatment services, 10% of the revenue in thefund.

(3) To the department, for further research related to the use ofmedical marijuana, including the research program established under Chapter19, 30% of the revenue in the fund. Funding shall be provided for researchinto the treatment of those serious medical conditions for which medical

marijuana is available for treatment within this Commonwealth and for researchinto the use of medical marijuana to treat other medical conditions for whichmedical marijuana may have legitimate medicinal value. Money shall be used tosubsidize the cost of, or provide, medical marijuana to patients participatingin the program. However, money in the fund may not be expended on activityunder Chapter 20.

(4) To the Pennsylvania Commission on Crime and Delinquency, fordistribution to local police departments which demonstrate a need relating tothe enforcement of this act, 5% of the revenue in the fund.(d) Repayment of initial funding.--The department shall repay from the fees,

taxes and investment earnings of the fund to the General Fund any moneyappropriated for the initial planning, organization and administration by thedepartment with respect to the establishment of the program at the time of theoriginal enactment of this act. Repayment shall take place within a 10-year periodcommencing one year after the date of publication in the Pennsylvania Bulletin ofthe final regulations.

CHAPTER 11ADMINISTRATION

Section 1101. Governing practice and procedure.The provisions of 2 Pa.C.S. (relating to administrative law and procedure)

shall apply to all actions of the department under this act constituting anadjudication as defined in 2 Pa.C.S. § 101 (relating to definitions).Section 1102. Reports by medical marijuana organizations.

A medical marijuana organization shall periodically file reports related toits activities. The department shall determine the information required in and thefrequency of filing the reports.Section 1103. Law enforcement notification.

Notwithstanding any provision of this act or any other law to the contrary,the department may notify any appropriate law enforcement agency of informationrelating to any violation or suspected violation of this act. In addition, thedepartment shall verify to law enforcement personnel in an appropriate casewhether a certification, permit, registration or an identification card is valid,including release of the name of the patient.Section 1104. Evaluation.

The department may provide for an analysis and evaluation of theimplementation and effectiveness of this act, including whether the intent andstated policy of the General Assembly have been achieved. The department may enterinto agreements with one or more persons for the performance of an evaluation ofthe implementation and effectiveness of this act.Section 1105. Report.

(a) Report required.--The department shall submit a written report undersubsection (b) every two years, beginning two years after the effective date ofthis section, to the following:

(1) The Governor.(2) The President pro tempore of the Senate.(3) The Majority Leader and the Minority Leader of the Senate.(4) The Speaker of the House of Representatives.(5) The Majority Leader and the Minority Leader of the House of

Representatives.(6) The chairman and minority chairman of the Judiciary Committee of the

Senate.(7) The chairman and minority chairman of the Public Health and Welfare

Committee of the Senate.

(8) The chairman and minority chairman of the Judiciary Committee of theHouse of Representatives.

(9) The chairman and minority chairman of the Health Committee of theHouse of Representatives.

(10) The Attorney General of the Commonwealth.(b) Contents of report.--The following information shall be included in the

report:(1) An assessment of the use of medical marijuana as a result of the

enactment of this act.(2) An assessment of the benefits and risks to patients using medical

marijuana under this act, including adverse events.(3) Recommendations for amendments to this act for reasons of patient

safety or to aid the general welfare of the citizens of this Commonwealth.Section 1106. (Reserved).Section 1107. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt implementation of thisact, the department may promulgate temporary regulations that shall expire notlater than two years following the publication of the temporary regulation. Thedepartment may promulgate temporary regulations not subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968(P.L.769, No.240), referred to as the Commonwealth Documents Law.

(2) The act of June 25, 1982 (P.L.633, No.181), known as the RegulatoryReview Act.

(3) Sections 204(b) and 301(10) of the act of October 15, 1980 (P.L.950,No.164), known as the Commonwealth Attorneys Act.(b) Expiration.--The department's authority to adopt temporary regulations

under subsection (a) shall expire two years after the effective date of thissection. Regulations adopted after this period shall be promulgated as provided bylaw.

(c) Publication.--The department shall begin publishing temporary regulationsin the Pennsylvania Bulletin no later than six months after the effective date ofthis section.

CHAPTER 12MEDICAL MARIJUANA ADVISORY BOARD

Section 1201. Advisory board.(a) Establishment.--The Medical Marijuana Advisory Board is established

within the department. The advisory board shall consist of the following members:(1) The secretary or a designee.(2) The Commissioner of the Pennsylvania State Police or a designee.(3) The chairman of the State Board of Pharmacy or a designee.(4) The Commissioner of Professional and Occupational Affairs or a

designee.(5) The Physician General or a designee.(6) The president of the Pennsylvania Chiefs of Police Association or a

designee.(7) The president of the Pennsylvania District Attorneys Association or

a designee.(8) One member to be appointed by each of the following, which members

shall be knowledgeable and experienced in issues relating to care andtreatment of individuals with a serious medical condition, geriatric orpediatric medicine or clinical research:

(i) The Governor.(ii) The President pro tempore of the Senate.(iii) The Majority Leader of the Senate.

(iv) The Minority Leader of the Senate.(v) The Speaker of the House of Representatives.(vi) The Majority Leader of the House of Representatives.(vii) The Minority Leader of the House of Representatives.

(9) One member appointed by the Governor, who shall be a patient, afamily or household member of a patient or a patient advocate.(b) Terms.--Except as provided under subsection (g), the members appointed

under subsection (a)(8) and (9) shall serve a term of four years or until asuccessor has been appointed and qualified, but no longer than six months beyondthe four-year period.

(c) Chair.--The secretary, or a designee, shall serve as chair of theadvisory board.

(d) Voting; quorum.--The members under subsection (a)(1), (2), (3), (4), (5),(6) and (7) shall serve ex officio and shall have voting rights. A majority of themembers shall constitute a quorum for the purpose of organizing the advisoryboard, conducting its business and fulfilling its duties. A vote of the majorityof the members present shall be sufficient for all actions of the advisory boardunless the bylaws require a greater number.

(e) Attendance.--A member of the advisory board appointed under subsection(a)(8) or (9) who fails to attend three consecutive meetings shall forfeit hisseat unless the secretary, upon written request from the member, finds that themember should be excused from a meeting for good cause. A member who cannot bephysically present may attend meetings via electronic means, including videoconference.

(f) Governance.--The advisory board shall have the power to prescribe, amendand repeal bylaws, rules and regulations governing the manner in which thebusiness of the advisory board is conducted and the manner in which the dutiesgranted to it are fulfilled. The advisory board may delegate supervision of theadministration of advisory board activities to an administrative secretary andother employees of the department as the secretary shall appoint.

(g) Initial terms.--The initial terms of members appointed under subsection(a)(8) and (9) shall be for terms of one, two, three or four years, the particularterm of each member to be designated by the secretary at the time of appointment.All other members shall serve for a term of four years.

(h) Vacancy.--In the event that any member appointed under subsection (a)(8)or (9) shall die or resign or otherwise become disqualified during the member'sterm of office, a successor shall be appointed in the same way and with the samequalifications as set forth in this section and shall hold office for theunexpired term. An appointed member of the advisory board shall be eligible forreappointment.

(i) Expenses.--A member appointed under subsection (a)(8) or (9) shallreceive the amount of reasonable travel, hotel and other necessary expensesincurred in the performance of the duties of the member in accordance withCommonwealth regulations, but shall receive no other compensation for the member'sservice on the board.

(j) Duties.--The advisory board shall have the following duties:(1) To examine and analyze the statutory and regulatory law relating to

medical marijuana within this Commonwealth.(2) To examine and analyze the law and events in other states and the

nation with respect to medical marijuana.(3) To accept and review written comments from individuals and

organizations about medical marijuana.(4) To issue two years after the effective date of this section a

written report to the Governor, the Senate and the House of Representatives.

(5) The written report under paragraph (4) shall include recommendationsand findings as to the following:

(i) Whether to change the types of medical professionals who canissue certifications to patients.

(ii) Whether to change, add or reduce the types of medicalconditions which qualify as serious medical conditions under this act.

(iii) Whether to change the form of medical marijuana permittedunder this act.

(iv) Whether to change, add or reduce the number ofgrowers/processors or dispensaries.

(v) How to ensure affordable patient access to medical marijuana.(vi) Whether to permit medical marijuana to be dispensed in dry

leaf or plant form, for administration by vaporization.(6) The final written report under this section shall be adopted at a

public meeting. The report shall be a public record under the act of February14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

Section 1202. Regulations based on recommendations of advisory board.After receiving the report of the advisory board under section 1201(j)(4), at

the discretion of the secretary, the department may promulgate regulations toeffectuate recommendations made by the advisory board. The secretary shall issuenotice in the Pennsylvania Bulletin within 12 months of the receipt of the reportof the advisory board. The notice shall include the recommendations of theadvisory board and shall state the specific reasons for the decision of thesecretary on whether or not to effectuate each recommendation.

CHAPTER 13OFFENSES RELATED TO MEDICAL MARIJUANA

Section 1301. Criminal diversion of medical marijuana by practitioners.In addition to any other penalty provided by law, a practitioner commits a

misdemeanor of the first degree if the practitioner intentionally, knowingly orrecklessly certifies a person as being able to lawfully receive medical marijuanaor otherwise provides medical marijuana to a person who is not lawfully permittedto receive medical marijuana.Section 1302. Criminal diversion of medical marijuana.

In addition to any other penalty provided by law, an employee, financialbacker, operator or principal of any of the following commits a misdemeanor of thefirst degree if the person intentionally, knowingly or recklessly sells,dispenses, trades, delivers or otherwise provides medical marijuana to a personwho is not lawfully permitted to receive medical marijuana:

(1) A medical marijuana organization.(2) A health care medical marijuana organization or university

participating in a research study under Chapter 19.(3) A clinical registrant or academic clinical research center under

Chapter 20.(4) A laboratory utilized to test medical marijuana under section 704.

Section 1303. Criminal retention of medical marijuana.In addition to any other penalty provided by law, a patient or caregiver

commits a misdemeanor of the third degree if the patient or caregiverintentionally, knowingly or recklessly possesses, stores or maintains an amount ofmedical marijuana in excess of the amount legally permitted.Section 1304. Criminal diversion of medical marijuana by patient or caregiver.

(a) Offense defined.--In addition to any other penalty provided by law, apatient or caregiver commits an offense if the patient or caregiver intentionally,knowingly or recklessly provides medical marijuana to a person who is not lawfullypermitted to receive medical marijuana.

(b) Grading.--A first offense under this section constitutes a misdemeanor ofthe second degree. A second or subsequent offense constitutes a misdemeanor of thefirst degree.Section 1305. Falsification of identification cards.

(a) Offense defined.--In addition to any other penalty provided by law, aperson commits an offense if, knowing he is not privileged to hold anidentification card, the person:

(1) possesses an identification card and either attempts to use the cardto obtain medical marijuana or obtains medical marijuana;

(2) possesses an identification card which falsely identifies the personas being lawfully entitled to receive medical marijuana and either attempts touse the card to obtain medical marijuana or obtains medical marijuana; or

(3) possesses an identification card which contains any falseinformation on the card and the person either attempts to use the card toobtain medical marijuana or obtains medical marijuana.(b) Grading.--A first offense under this section constitutes a misdemeanor of

the second degree. A second or subsequent offense under this section constitutes amisdemeanor of the first degree.Section 1306. Adulteration of medical marijuana.

(a) General rule.--In addition to any other penalty provided by law, a personcommits an offense if the person adulterates, fortifies, contaminates or changesthe character or purity of medical marijuana from that set forth on the patient'sor caregiver's identification card.

(b) Grading.--A first offense under this section constitutes a misdemeanor ofthe second degree. A second or subsequent offense under this section constitutes amisdemeanor of the first degree.Section 1307. Disclosure of information prohibited.

(a) Offense defined.--In addition to any other penalty provided by law, anemployee, financial backer, operator or principal of any of the following commitsa misdemeanor of the third degree if the person discloses, except to authorizedpersons for official governmental or health care purposes, any information relatedto the use of medical marijuana:

(1) A medical marijuana organization.(2) A health care medical marijuana organization or university

participating in a research study under Chapter 19.(3) A clinical registrant or academic clinical research center under

Chapter 20.(4) An employee of the department.

(b) Exception.--Subsection (a) shall not apply where disclosure is permittedor required by law or by court order.Section 1308. Additional penalties.

(a) Criminal penalties.--In addition to any other penalty provided by law, apractitioner, caregiver, patient, employee, financial backer, operator orprincipal of any medical marijuana organization, health care medical organizationor university participating in a research study under Chapter 19, and an employee,financial backer, operator or principal of a clinical registrant or academicclinical research center under Chapter 20, who violates any of the provisions ofthis act, other than those specified in section 1301, 1302, 1303, 1304, 1305, 1306or 1307, or any regulation promulgated under this act:

(1) For a first offense, commits a misdemeanor of the third degree andshall, upon conviction, be sentenced to pay a fine of not more than $5,000, orto imprisonment for not more than six months.

(2) For a second or subsequent offense, commits a misdemeanor of thethird degree and shall, upon conviction, be sentenced to pay a fine of not

more than $10,000, or to imprisonment for not less than six months or morethan one year, or both.(b) Civil penalties.--In addition to any other remedy available to the

department, the department may assess a civil penalty for a violation of this act,a regulation promulgated under this act or an order issued under this act orregulation as provided in this subsection. The following shall apply:

(1) The department may assess a penalty of not more than $10,000 foreach violation and an additional penalty of not more than $1,000 for each dayof a continuing violation. In determining the amount of each penalty, thedepartment shall take the following factors into consideration:

(i) The gravity of the violation.(ii) The potential harm resulting from the violation to patients,

caregivers or the general public.(iii) The willfulness of the violation.(iv) Previous violations, if any, by the person being assessed.(v) The economic benefit to the person being assessed for failing

to comply with the requirements of this act, a regulation promulgatedunder this act or an order issued under this act or regulation.(2) If the department finds that the violation did not threaten the

safety or health of a patient, caregiver or the general public and theviolator took immediate action to remedy the violation upon learning of it,the department may issue a written warning in lieu of assessing a civilpenalty.

(3) A person who aids, abets, counsels, induces, procures or causesanother person to violate this act, a regulation promulgated under this act oran order issued under this act or regulation shall be subject to the civilpenalties provided under this subsection.(c) Sanctions.--

(1) In addition to the penalties provided in subsection (b) and anyother penalty authorized by law, the department may impose the followingsanctions:

(i) Revoke or suspend the permit of a person found to be inviolation of this act, a regulation promulgated under this act or anorder issued under this act or regulation.

(ii) Revoke or suspend the permit of a person for conduct oractivity or the occurrence of an event that would have disqualified theperson from receiving the permit.

(iii) Revoke or suspend the registration of a practitioner for aviolation of this act or a regulation promulgated or an order issuedunder this act or for conduct or activity which would have disqualifiedthe practitioner from receiving a registration.

(iv) Suspend a permit or registration of a person pending theoutcome of a hearing in a case in which the permit or registration couldbe revoked.

(v) Order restitution of funds or property unlawfully obtained orretained by a permittee or registrant.

(vi) Issue a cease and desist order.(2) A person who aids, abets, counsels, induces, procures or causes

another person to violate this act shall be subject to the sanctions providedunder this subsection.(d) Costs of action.--The department may assess against a person determined

to be in violation of this act the costs of investigation of the violation.(e) Minor violations.--Nothing in this section shall be construed to require

the assessment of a civil penalty or the imposition of a sanction for a minor

violation of this act if the department determines that the public interest willbe adequately served under the circumstances by the issuance of a written warning.Section 1309. Other restrictions.

This act does not permit any person to engage in and does not prevent theimposition of any civil, criminal or other penalty for the following:

(1) Undertaking any task under the influence of medical marijuana whendoing so would constitute negligence, professional malpractice or professionalmisconduct.

(2) Possessing or using medical marijuana in a State or countycorrectional facility, including a facility owned or operated or undercontract with the Department of Corrections or the county which houses inmatesserving a portion of their sentences on parole or other community correctionprogram. Nothing in this paragraph shall be construed to apply to employees ofthe facilities set forth in this paragraph. The Department of Correctionsshall adopt a written policy no later than 18 months from the effective dateof this section regarding the possession and use of medical marijuana byemployees in State correctional facilities. The governing authority of acounty may adopt a resolution no later than 18 months from the effective dateof this section regarding the possession and use of medical marijuana byemployees in a county correctional facility.

(3) Possessing or using medical marijuana in a youth detention center orother facility which houses children adjudicated delinquent, including theseparate, secure State-owned facility or unit utilized for sexually violentdelinquent children under 42 Pa.C.S. § 6404 (relating to duration of inpatientcommitment and review). As used in this paragraph, the term "sexually violentdelinquent children" shall have the meaning given to it in 42 Pa.C.S. § 6402(relating to definitions). Nothing in this paragraph shall be construed toapply to employees of the facilities set forth in this paragraph.

CHAPTER 19RESEARCH PROGRAM

Section 1901. Definitions.The following words and phrases when used in this chapter shall have the

meanings given to them in this section unless the context clearly indicatesotherwise:

"Health care medical marijuana organization." A vertically integrated healthsystem approved by the department to dispense medical marijuana or grow andprocess medical marijuana, or both, in accordance with a research study under thischapter.

"Vertically integrated health system." A health delivery system licensedunder the act of July 19, 1979 (P.L.130, No.48), known as the Health CareFacilities Act, in which the complete spectrum of care, including primary andspecialty care, hospitalization and pharmaceutical care, is provided within asingle organization.Section 1902. Establishment of medical marijuana research program.

(a) Program to be established.--The department shall establish and develop aresearch program to study the impact of medical marijuana on the treatment andsymptom management of serious medical conditions. The program shall not include aclinical registrant or academic clinical research center under Chapter 20.

(b) Department duties.--The department shall:(1) Review all serious medical conditions which are cited by a

practitioner upon the practitioner's certification that a patient be grantedan identification card.

(2) Create a database of all serious medical conditions, includingcomorbidities, which are cited by practitioners in the certifications of

patients. The database shall also include the form of medical marijuanacertified to treat each serious medical condition.

(3) When the database contains 25 or more patients with the same seriousmedical condition, petition the United States Food and Drug Administration andthe United States Drug Enforcement Administration for approval to study thecondition and the impact of medical marijuana on the condition.

(4) Concurrent with the request to the United States Food and DrugAdministration and United States Drug Enforcement Administration, publiclyannounce the formation of a research study to which a vertically integratedhealth system and a university within this Commonwealth may submit a requestto participate.

(5) Upon approval of a research study by the United States Food and DrugAdministration and the United States Drug Enforcement Administration, select avertically integrated health system or systems to conduct the research studyand designate the form or forms of medical marijuana which will be used totreat the serious medical condition.

(6) Notify a patient who has been issued an identification card:(i) that the patient has been selected to participate, at the

patient's option, in a research study to study medical marijuana as atreatment; and

(ii) where the patient may secure medical marijuana through ahealth care medical marijuana organization at no cost to the patient inaccordance with subsection (c).(7) If the United States Food and Drug Administration and the United

States Drug Enforcement Administration reject the proposal for the researchstudy, take all reasonable steps to collect and collate data on the seriousmedical condition and the use of medical marijuana as a treatment for theserious medical condition and consider submitting an additional request to theUnited States Food and Drug Administration and United States Drug EnforcementAdministration for a research study on the same condition.(c) Costs.--The cost of the medical marijuana which is dispensed to patients

in accordance with an approved research study shall be paid for by the fund.(d) Geographic accessibility.--The department shall take into consideration

the geographic location of the health care medical marijuana organization whenassigning a patient to a health care medical marijuana organization. Thedepartment shall make an effort to assign a patient to a health care medicalmarijuana organization that is located within 50 miles of the patient's residence.

(e) Data.--Data collected by the health care medical marijuana organizationshall be provided to the university participating in the research study foranalysis.Section 1903. Medical marijuana research program administration.

(a) General rule.--The department shall establish a research study for eachserious medical condition. The department shall engage universities within thisCommonwealth to participate in the collection, collation, analysis and conclusivefindings of the research studies. The department shall, by regulation, establishthe procedure to be used by health care medical marijuana organizations withrespect to:

(1) Real time inventory tracking.(2) Real time tracking of the medical marijuana dispensed.(3) Recall of defective medical marijuana.

(b) Request for distributions.--The department shall establish a form andprocedure for universities selected to participate in a research study to requestdistributions from the fund to conduct research on medical marijuana, includingadministrative costs. These distributions shall also be used to pay for the cost

of the medical marijuana so that it is not borne by the patient participating inthe research study. The forms shall include, at a minimum, the following:

(1) The form or forms of medical marijuana to be studied.(2) The serious medical condition to be studied.

(c) Research reports.--(1) A vertically integrated health system shall report on the

effectiveness of the use of medical marijuana for the treatment of the seriousmedical condition studied and all counterindications and noted side effects.

(2) The department shall notify the vertically integrated health systemand the university participating in the research study of the data which isrequired to meet the United States Food and Drug Administration's and theUnited States Drug Enforcement Administration's approval for the researchstudy.

(3) The first report, including the data required under paragraph (2),shall be submitted to the department and made publicly available within 180days of the initiation of a research study for a specific serious medicalcondition.

(4) An annual report of the data required under paragraph (2) shall besubmitted to the department beginning one year after the initiation of aresearch study for a specific serious medical condition and each yearthereafter.

Section 1904. Approval.A vertically integrated health system located in this Commonwealth may

petition the department to participate in a research study to study a seriousmedical condition under section 1903. Approval of the vertically integrated healthsystem as a health care medical marijuana organization by the department shallauthorize access within a region under section 603(d) to medical marijuana for allpatients included in an approved research study.Section 1905. Requirements.

(a) Dispensing.--A health care medical marijuana organization that dispensesmedical marijuana shall:

(1) Maintain licensure with the department as required under the act ofJuly 19, 1979 (P.L.130, No.48), known as the Health Care Facilities Act.

(2) Secure the medical marijuana within the associated pharmacies of thehealth care medical marijuana organization in a manner and method prescribedby the department.

(3) Keep a daily log of the medical marijuana dispensed and the researchstudy with which the patient and the medical marijuana are associated. Reportsshall be delivered to the department and the university participating in theresearch study on a weekly basis.

(4) Report to the Pennsylvania Health Care Cost Containment Council theutilization rates of those patients participating in the research of medicalmarijuana and treatment options.

(5) Only dispense medical marijuana received from a grower/processor ora health care medical marijuana organization that is approved to grow andprocess medical marijuana.

(6) Provide all patients or caregivers with the safety insert, preparedby the department, which includes potential dangers, recognition andcorrection of problematic dosage and any other information required by thedepartment or which the department deems relevant for patient safety.(b) Growing and processing.--A health care medical marijuana organization

that grows and processes medical marijuana shall:(1) Maintain licensure with the department as required under the Health

Care Facilities Act.

(2) Only make available medical marijuana to health care medicalmarijuana organizations that dispense medical marijuana.

(3) Keep a daily log of medical marijuana intended for ultimate use bypatients participating in a research study.

Section 1906. Restrictions.A health care medical marijuana organization may not participate in a research

study of any kind, including the program established under this chapter, ordispense or grow and process medical marijuana if it has violated its licensurerequirements under the act of July 19, 1979 (P.L.130, No.48), known as the HealthCare Facilities Act.Section 1907. Regulations.

The department shall, by regulation, establish the procedure to be used by ahealth care medical marijuana organization that grows and processes medicalmarijuana with respect to:

(1) Real time inventory tracking, including a seed-to-dispensingtracking system that tracks medical marijuana from seed or immature plantstage until the medical marijuana is provided to a patient in a researchstudy.

(2) Security, recordkeeping, record retention and surveillance systemsrelating to every stage of growing and processing medical marijuana.

(3) A daily log of each day's beginning inventory, acquisitions,disbursements, disposals and ending inventory.

(4) A system to recall defective medical marijuana.(5) A system to track the plant waste resulting from the growth of

medical marijuana.(6) Testing of medical marijuana by an independent laboratory to test

the medical marijuana produced by the health care medical marijuanaorganization, including requiring a test at harvest and a test at finalprocessing.

(7) Any other procedure deemed necessary by the department.Section 1908. Nonentitlement.

Nothing in this chapter shall be construed to create an entitlement or rightof a patient to receive medical marijuana or to participate in a research study.

CHAPTER 20ACADEMIC CLINICAL RESEARCH CENTERS

Section 2001. Definitions.The following words and phrases when used in this chapter shall have the

meanings given to them in this section unless the context clearly indicatesotherwise:

"Academic clinical research center." An accredited medical school within thisCommonwealth that operates or partners with an acute care hospital licensed withinthis Commonwealth.

"Clinical registrant." An entity that:(1) holds a permit as both a grower/processor and a dispensary; and(2) has a contractual relationship with an academic clinical research

center under which the academic clinical research center or its affiliateprovides advice to the entity, regarding, among other areas, patient healthand safety, medical applications and dispensing and management of controlledsubstances.

Section 2002. Clinical registrants.Notwithstanding the limitations in section 616, the department may register up

to eight clinical registrants. Each entity may provide medical marijuana at notmore than six separate locations. The total number of locations authorized to

dispense medical marijuana under this section shall not exceed 48. The followingapply with respect to this category of clinical registrant:

(1) A clinical registrant must pay the fees and meet all otherrequirements under this act for obtaining a permit as a grower/processor and adispensary, except as provided under section 607(1)(vi) and (2)(vi).

(2) The clinical registrant must have a minimum of $15,000,000 incapital. The department shall verify the capital requirement.

(3) The clinical registrant must comply with all other requirements ofthis act regarding growing, processing and dispensing medical marijuana.

Section 2003. Research study.Notwithstanding any provision of this act to the contrary, the department may,

upon application, approve the dispensing of medical marijuana by a clinicalregistrant to the academic clinical research center for the purpose of conductinga research study. The department shall develop the application and standards forapproval of such dispensing by the clinical registrant. The following apply to theresearch study:

(1) The clinical registrant shall disclose the following information tothe department in its application:

(i) The reason for the research project, including the reason forthe trial.

(ii) The strain of medical marijuana to be used and the strength ofthe medical marijuana to be used in the research study.

(iii) The anticipated duration of the study.(iv) Evidence of approval of the trial by an accredited

institutional review board, including any other required regulatoryapprovals.

(v) Other information required by the department, except that thedepartment may not require disclosure of any information that wouldinfringe upon the academic clinical research center's exclusive right tointellectual property or legal obligations for patient confidentiality.(2) The academic clinical research center shall provide its findings to

the department within 365 days of the conclusion of the research study orwithin 365 days of publication of the results of the research study in a peer-reviewed medical journal, whichever is later.

(3) The department shall allow the exchange of medical marijuana seedbetween clinical registrants for the conduct of research.

CHAPTER 21MISCELLANEOUS PROVISIONS

Section 2101. Conflict.The growth, processing, manufacture, acquisition, transportation, sale,

dispensing, distribution, possession and consumption of medical marijuanapermitted under this act shall not be deemed to be a violation of the act of April14, 1972 (P.L.233, No.64), known as The Controlled Substance, Drug, Device andCosmetic Act. If a provision of the Controlled Substance, Drug, Device andCosmetic Act relating to marijuana conflicts with a provision of this act, thisact shall take precedence.Section 2101.1. Financial and employment interests.

(a) Financial interests.--Except as may be provided for the judiciary by ruleor order of the Pennsylvania Supreme Court, an executive-level public employee,public official or party officer, or an immediate family member thereof, shall notintentionally or knowingly hold a financial interest in a medical marijuanaorganization or in a holding company, affiliate, intermediary or subsidiarythereof, while the individual is an executive-level public employee, publicofficial or party officer and for one year following termination of the

individual's status as an executive-level public employee, public official orparty officer.

(b) Employment.--Except as may be provided by rule or order of thePennsylvania Supreme Court, no executive-level public employee, public official orparty officer, or an immediate family member thereof, shall be employed by amedical marijuana organization or by any holding company, affiliate, intermediaryor subsidiary thereof, while the individual is an executive-level public employee,public official or party officer and for one year following termination of theindividual's status as an executive-level public employee, public official orparty officer.

(c) Grading.--An individual who violates this section commits a misdemeanorand shall, upon conviction, be sentenced to pay a fine of not more than $1,000 orto imprisonment for not more than one year, or both.

(d) State Ethics Commission.--The State Ethics Commission shall do all of thefollowing:

(1) Issue a written determination of whether a person is subject tosubsection (a) or (b) upon the written request of the person or any otherperson that may have liability for an action taken with respect to suchperson. A person that relies in good faith on a determination made under thisparagraph shall not be subject to any penalty for an action taken, providedthat all material facts set forth in the request for the determination arecorrect.

(2) Publish a list of all State, county, municipal and other governmentpositions that meet the definitions of "public official" or "executive-levelpublic employee" as defined under 4 Pa.C.S. § 1512(b) (relating to financialand employment interests). The Office of Administration shall assist the StateEthics Commission in the development of the list, which shall be published bythe State Ethics Commission in the Pennsylvania Bulletin biennially and postedby the department on the department's Internet website. Upon request, eachpublic official shall have a duty to provide the State Ethics Commission withadequate information to accurately develop and maintain the list. The StateEthics Commission may impose a civil penalty under 65 Pa.C.S. § 1109(f)(relating to penalties) upon any individual, including any public official orexecutive-level public employee, who fails to cooperate with the State EthicsCommission under this subsection. A person that relies in good faith on thelist published by the State Ethics Commission shall not be subject to anypenalty for a violation of this section.(e) Definitions.--As used in this section, the following words and phrases

shall have the meanings given to them in this subsection:"Financial interest." As defined in 4 Pa.C.S. § 1512(b)."Immediate family." As defined in 4 Pa.C.S. § 1512(b)."Party officer." As defined in 4 Pa.C.S. § 1512(b)."Public official." The term shall include the following:

(1) The Governor, Lieutenant Governor, a member of the Governor'scabinet, Treasurer, Auditor General and Attorney General of the Commonwealth.

(2) A member of the Senate or House of Representatives of theCommonwealth.

(3) An individual elected or appointed to any office of a county ormunicipality that directly receives a distribution of revenue from the fund.

(4) An individual elected or appointed to a department, agency, board,commission, authority or other governmental body not included in paragraph(1), (2) or (3) that directly receives a distribution of revenue from thefund.

(5) An individual elected or appointed to a department, agency, board,commission, authority, county, municipality or other governmental body not

included in paragraph (1), (2) or (3) with discretionary power which mayinfluence or affect the outcome of an action or decision and who is involvedin the development of regulation or policy relating to a medical marijuanaorganization or who is involved in other matters under this act.

The term does not include a member of a school board or an individual who held anuncompensated office with a governmental body prior to January 1, 2017, and who nolonger holds the office as of January 1, 2017.Section 2102. Insurers.

Nothing in this act shall be construed to require an insurer or a health plan,whether paid for by Commonwealth funds or private funds, to provide coverage formedical marijuana.Section 2103. Protections for patients and caregivers.

(a) Licensure.--None of the following shall be subject to arrest, prosecutionor penalty in any manner, or denied any right or privilege, including civilpenalty or disciplinary action by a Commonwealth licensing board or commission,solely for lawful use of medical marijuana or manufacture or sale or dispensing ofmedical marijuana, or for any other action taken in accordance with this act:

(1) A patient.(2) A caregiver.(3) A practitioner.(4) A medical marijuana organization.(5) A health care medical marijuana organization or university

participating in a research study under Chapter 19.(6) A clinical registrant or academic clinical research center under

Chapter 20.(7) An employee, principal or financial backer of a medical marijuana

organization.(8) An employee of a health care medical marijuana organization or an

employee of a university participating in a research study under Chapter 19.(9) An employee of a clinical registrant or an employee of an academic

clinical research center under Chapter 20.(10) A pharmacist, physician assistant or certified registered nurse

practitioner under section 801(b).(b) Employment.--

(1) No employer may discharge, threaten, refuse to hire or otherwisediscriminate or retaliate against an employee regarding an employee'scompensation, terms, conditions, location or privileges solely on the basis ofsuch employee's status as an individual who is certified to use medicalmarijuana.

(2) Nothing in this act shall require an employer to make anyaccommodation of the use of medical marijuana on the property or premises ofany place of employment. This act shall in no way limit an employer's abilityto discipline an employee for being under the influence of medical marijuanain the workplace or for working while under the influence of medical marijuanawhen the employee's conduct falls below the standard of care normally acceptedfor that position.

(3) Nothing in this act shall require an employer to commit any act thatwould put the employer or any person acting on its behalf in violation ofFederal law.(c) Custody determination.--The fact that an individual is certified to use

medical marijuana and acting in accordance with this act shall not by itself beconsidered by a court in a custody proceeding. In determining the best interest ofa child with respect to custody, the provisions of 23 Pa.C.S. Ch. 53 (relating tochild custody) shall apply.Section 2104. Schools.

The Department of Education shall promulgate regulations within 18 months ofthe effective date of this section regarding the following:

(1) Possession and use of medical marijuana by a student on the groundsof a preschool, primary school and a secondary school.

(2) Possession and use of medical marijuana by an employee of apreschool, primary school and a secondary school on the grounds of suchschool.

Section 2105. Day-care centers.The Department of Human Services shall promulgate regulations within 18 months

of the effective date of this section regarding the following:(1) Possession and use of medical marijuana by a child under the care of

a child-care or social service center licensed or operated by the Departmentof Human Services.

(2) Possession and use of medical marijuana by an employee of a child-care or social service center licensed or operated by the Department of HumanServices.

(3) Possession and use of medical marijuana by employees of a youthdevelopment center or other facility which houses children adjudicateddelinquent, including the separate, secure State-owned facility or unit forsexually violent children, as set forth in section 1309(3).

Section 2106. Medical marijuana from other states.(a) General rule.--It is not a violation of this act or the act of April 14,

1972 (P.L.233, No.64), known as The Controlled Substance, Drug, Device andCosmetic Act, if a parent or guardian of a minor under 18 years of age lawfullyobtains medical marijuana from another state, territory of the United States orany other country to be administered to the minor.

(b) Expiration.--This section shall expire 730 days after the effective dateof this section.Section 2107. Zoning.

The following apply:(1) A grower/processor shall meet the same municipal zoning and land use

requirements as other manufacturing, processing and production facilities thatare located in the same zoning district.

(2) A dispensary shall meet the same municipal zoning and land userequirements as other commercial facilities that are located in the samezoning district.

Section 2108. Notice.Upon amendment of the Controlled Substances Act (Public Law 91-513, 84 Stat.

1236) removing marijuana from Schedule I of the Controlled Substances Act, thedepartment shall publish notice of the effective date of the amendment in thePennsylvania Bulletin.Section 2109. Applicability.

(a) Dispensaries.--The provisions of this act with respect to dispensariesshall not apply beginning 1,095 days from the effective date of an amendment tothe Controlled Substances Act (Public Law 91-513, 84 Stat. 1236) removingmarijuana from Schedule I of the Controlled Substances Act.

(b) Issuance.--The issuance of permits and other authorizations shall beginupon publication of a notice by the department in the Pennsylvania Bulletin thatadequate temporary or permanent regulations have been adopted to initiate theprogram under this act.Section 2110. Effective date.

This act shall take effect in 30 days.